The report also warned that “precedent suggests that if the taxable value diverges significantly from the market value that constitutional issues could arise”.

The third option is to undergo a process of re-evaluation of properties and adjust the rate at a national level to maintain the overall amount of money raised.

“Average payments would be similar but properties that have increased [particularly in Dublin and other urban areas] will see increases in their LPT charge,” the report said.

The fourth option, argues for a re-evaluation of homes but allows local authorities to ensure the amount of money raised is maintained.

“The 2015 Thornhill Review of the LPT recommended that this approach be adopted,” the report states.

Fianna Fáil finance spokesman and Michael McGrath told the Irish Examiner dramatic increases in bills have to be avoided.

“The priority has to be to avoid the dramatic increase in LPT bills that households will face if the current system is not reformed,” he said.

“The changes to the LPT regime need to bring about greater certainty for households and local authorities and avoid further wild fluctuations in the future. This will have to be dealt with by Budget 2019 so that people can plan for the future with a degree of certainty.”

At the Oireachtas Budget oversight committee, finance officials appeared to rule out moving to a site- valuation tax model.